Online Piracy Can Boost Comic Book Sales, Research Finds

[NelsonG]

Research into online piracy comes in all shapes and sizes, with equally mixed results. Often the main question is whether piracy hurts legitimate revenue streams.

In recent years we have seen a plethora of studies and most are focused on the effects on movies, TV-shows and music revenues. But what about comic books?

Manga in particular has traditionally been very popular on file-sharing networks and sites. These are dozens of large sites dedicated to the comics, which are downloaded in their millions.

According to the anti-piracy group CODA, which represents Japanese comic publishers, piracy losses overseas are estimated to be double the size of overseas legal revenue.

With this in mind, Professor Tatsuo Tanaka of the Faculty of Economics at Keio University decided to look more closely at how piracy interacts with legal sales. In a natural experiment, he examined how the availability of pirated comic books affected revenue.

The research uses a massive takedown campaign conducted by CODA in 2015, which directly impacted the availability of many pirated comics on various download sites, to see how this affected sales of 3,360 comic book volumes.

Interestingly, the results show that decreased availability of pirated comics doesn’t always help sales. In fact, for comics that no longer release new volumes, the effect is reversed.

“Piracy decreases sales of ongoing comics, but it increases sales of completed comics,” Professor Tanaka writes.

“To put this another way, displacement effect is dominant for ongoing comics, and advertisement effect is dominant for completed comics,” he adds.

For these finished comic seasons, the promotional element weighs heavier. According to the Professor, this suggests that piracy can effectively be seen as a form of advertising.

“Since completed comics series have already ended, and publishers no longer do any promotion for them, consumers almost forget completed comics. We can interpret that piracy reminds consumers of past comics and stimulates sales.”

The question that remains is whether the overall effect on the industry is positive or negative. The current study provided no answer to this effect, as it’s unknown how big the sales share is for ongoing versus completed comics, but future research could look into this.

Professor Tanaka stresses that there is an important policy implication of his findings. Since piracy doesn’t affect all sales the same (it’s heterogeneous), anti-piracy strategies may have to be adapted.

“If the effect of piracy is heterogeneous, it is not the best solution to shut down the piracy sites but to delete harmful piracy files selectively if possible,” Professor Tanaka adds

“In this case, deleting piracy files of ongoing comics only is the first best strategy for publishers regardless of whether the total effect is positive or negative, because the availability of piracy files of completed comics is beneficial to both publishers and consumers,” he adds.

The research shows once again that piracy is a complex phenomenon that can have a positive or negative impact depending on the context. This isn’t limited to comics of course, as previous studies have shown similar effects in the movie and music industries.

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The full paper titled The Effects of Internet Book Piracy: The Case of Japanese Comics is available here (pdf).

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